What will happen to your Taxes when the Bush Tax Cuts Expire?

Discussion in 'Economy' started by PLYMCO_PILGRIM, May 19, 2010.

  1. PLYMCO_PILGRIM
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    PLYMCO_PILGRIM Gold Member

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    Here is a handy dandy calculator to see what savings you will lose when they let the cuts expire. http://www.smartmoney.com/personal-finance/taxes/the-bush-tax-cut-worksheet-10177/

    Here are examples in $10,000 incriments as backed up by the IRS (for single filers) Bush Tax Cuts Before Bush Tax Cuts

    $10,000 $365 3.65% of income
    $20,000 $365 1.83% of income
    $30,000 $824 2.75% of income
    $40,000 $1124 2.81% of income
    $50,000 $1424 2.85% of income
    $60,000 $1724 2.87% of income
    $70,000 $2218 3.11% of income
    $80,000 $2575 3.21% of income
    $90,000 $2875 3.19% of income
    $100,000 $3145 3.14% of income
     
  2. rdean
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    rdean rddean

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    How come those making 100,000 get such a greater percentage if their income over those making 20,000? Doesn't seem fair.

    Keep following this chart. Is this why more than 52% of the 2.5 trillion dollars went to the top 5%?

    And how come we are paying the lowest taxes in 50 years while fighting two wars? How is that possible?
     
    Last edited: May 19, 2010
  3. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Here's why:

    Suppose that everyday 10 men go to PJ's for lunch. The bill for all ten comes to $100. If it were paid the way we pay our taxes, the first four men would pay nothing; the fifth would pay $1; the sixth would pay $3; the seventh $7; the eighth $12; the ninth $18. The tenth man (the richest) would pay $59. The 10 men ate lunch in the restaurant every day and seemed quite happy with the arrangement until the owner threw them a curve.

    "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily meal by $20." Now lunch for the 10 would costs only $80. The first four are unaffected. They still eat for free. Can you figure out how to divvy up the $20 savings between the remaining six so that everyone gets his fair share?

    The men realize that $20 divided by 6 is $3.33, but if they subtract that from everybody's share, then the fifth and the sixth man would end up being paid to eat their meal. The restaurant owner suggested that it would be only fair to reduce each man's bill by roughly the same amount that each paid and he started to work out the amounts each should pay.

    And so the fifth man paid nothing, the sixth pitched in $2, the seventh paid $5, the eighth paid $9, the ninth paid $12, leaving the tenth man with a bill of $52 instead of $59. Outside the restaurant, the men began to compare their savings.

    "I only got a dollar out of the $20," declared the sixth man pointing to the tenth, "and he got $7!"

    "Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got seven times more than me!"

    "That's true," shouted the seventh man. "Why should he get $7 back when I got only $2? The wealthy get all the breaks."

    "Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor."

    The nine men surrounded the tenth man and beat him up. The next day he didn't show up for lunch, so the nine sat down and ate without him. But when it came time to pay the bill, they discovered something important: They were $52 short!

    And that, boys and girls and college instructors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up at the table anymore. There are lots of good restaurants in Switzerland and the Caribbean.


    A Tax Fable
     
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  4. SFC Ollie
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    SFC Ollie Still Marching

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    Gotta love the Classics.
     
  5. webdev007
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    webdev007 Rookie

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    That's true!
     
  6. rdean
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    rdean rddean

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    Republicans have convinced their base that the universe revolves around the rich. How their lives will be shattered when they find it doesn't.
     
  7. Neubarth
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    Neubarth At the Ballpark July 30th

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    Under my American Nationalist party program, everybody would pay fifty percent Federal Income Tax on all that they make above $30,000 per individual. Thirty thousand would be set as the minimum income for survival. Any amount above that would be taxed. I think it would be very fair. Everybody with income above the survival level would be taxed fairly and equally. As soon as I assume the presidency I will make this law by Presidential decree.
     
  8. Luissa
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    Luissa Annoying Customer Supporting Member

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    maybe we will start paying for the war he started?
     
  9. PLYMCO_PILGRIM
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    PLYMCO_PILGRIM Gold Member

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    If you make $500,000 you lose out on $5000 or 1% of income. Dont cherry pick like that or you end up showing your partisan hand. I intentionally put that in there just to weed out the people like you.
     
  10. PLYMCO_PILGRIM
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    PLYMCO_PILGRIM Gold Member

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    We could easily pay for that by bringing the troops home(like obama ran on with his campaign platform), cutting/eliminating entitlement programs, and leaving the taxes alone(which obama promised to do on everyone making under 250k/year).

    Or he could just let the cuts expire on "the rich" and leave the rest of us alone.
     

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